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> Capital fleeing to asset classes with more favorable risk adjusted returns in a rising interest rate Which markets, care to ellaborate?
by mgh2 5y ago
> Capital fleeing to asset classes with more favorable risk adjusted returns in a rising interest rate
Which markets, care to ellaborate?
- leet_thow 5y agoEnergy, Consumer Staples and Utilities from my research.
- toomuchtodo 5y agoAlso commodities.
- abraxas 5y agoWouldn't utilities (famous for their large dividend distributions) get creamed in a rising interest rate environment?
- toomuchtodo 5y agoElectricity and gas are typically non discretionary spending.
- abraxas 5y agoNo question but utilities' distributions have to compete with higher treasury yields so that would be pushing downwards pressure on their prices. Actually in a tight money environment I don't really think there is a place to hide. Bonds and stocks are both likely to decline across the board. Cash and gold might be the best refuge.